Delivering on our climate commitment

We were one of the first Danish companies to have its climate targets approved by the Science Based Target initiative, a collaboration between the Carbon Disclosure Project (CDP), UN Global Compact (UNGC), World Resources Institute (WRI) and World Wide Fund for Nature (WWF). Read more about the Science Based Target Initiative.

In the 2025 CDP reporting cycle, Lundbeck achieved an “A” (Leadership) rating for the 11th consecutive year. Historically, only a small percentage of companies globally (around 2–4%) receive an A score in CDP assessments. You can read more about CDP A-list here. The CDP rates the disclosure and management or organizations towards climate change risk. Thus, for more than a decade, we have consistently reported annual reduction in both energy consumption and CO₂ emissions.

Since our first climate targets were set in 2007 we have reduced emissions from our sites considerably.

Despite our achievements, we still have a long way to go and the next decade is critical. In 2019, we joined the global movement “Business ambition for 1.5°C” pledge of leading companies aligning their business actions with the most ambitious aim of the Paris Agreement.

We have achieved excellent results within our direct emissions (Scope 1) and purchase of electricity and heat (Scope 2). However, around 80% of our total CO₂ emissions are derived from our value chain (Scope 3). This includes where the goods and services we need are produced, the distribution of our products to patients, when our employees travel, and how our waste is treated.
 

Our current near-term CO₂ targets are to:

• Reduce absolute scope 1 and 2 greenhouse gas (GHG) emissions 42% by 2029 from a 2019 base year.*
• Reduce absolute scope 3 GHG emissions from purchased goods and services, upstream transportation and distribution and business travel 25% within the same timeframe.

Our current long-term CO₂ target is to reduce absolute scope 1, 2 and 3 GHG emissions 90% by 2050 from a 2019 base year.*
 

*The target boundary includes land-related emissions and removals from bioenergy feedstocks.
 

Additionally, we have an overall Net-Zero Target that we commit to reach net-zero greenhouse gas emissions across the value chain by 2050.

Historically, we have demonstrated our commitment to cutting carbon emissions. The main part of the reduction comes from the optimization of existing buildings, plants and installations, as well as investments in new low-energy machines and plants. Lundbeck has also made a shift from conventional fuel to biofuel.

In parallel, we are accelerating the transition to renewable energy in our manufacturing and headquarter facilities. The main elements are changing our energy sources to renewable electricity or other renewable fuels, primarily using Power Purchasing Agreements (PPA). A solar park built following an agreement between Lundbeck and the energy provider Better Energy providing our two Danish sites with renewable electricity from 2022. We have explored similar solutions for our electricity consumption in the rest of Europe, but due to our small consumption it has proved to be difficult. Instead, we are purchasing guaranties of origin for renewable electricity.

The carbon footprint we leave outside our fence is approximately nine times as high as inside the fence. We take responsibility for this by addressing carbon emissions across our entire value chain – from operations and products to raw material production, clinical trials, distribution and end-of-life.

Lundbeck has a travel policy that promotes climate awareness among employees and supports our climate transition plan. This is a key focus area where new initiatives are being introduced to limit the environmental impact of business travel. We have already reduced travel-related emissions compared to our baseline year, and we continue to strengthen efforts to ensure further reductions in line with our long-term emission reduction targets.

The financial sector and investors increasingly ask companies to disclose their climate-related risks and opportunities. Lundbeck supports the TCFD recommendations and believes they provide a useful framework to increase transparency on climate-related risks and opportunities within financial markets.

As part of this commitment, we report comprehensively on governance, strategy, business opportunities, and risks related to climate change.